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Gym Group

LSE:GYM
Snowflake Description

Reasonable growth potential with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GYM
LSE
£319M
Market Cap
  1. Home
  2. GB
  3. Consumer Services
Company description

The Gym Group plc operates health and fitness facilities in the United Kingdom. The last earnings update was 63 days ago. More info.


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GYM Share Price and Events
7 Day Returns
2.9%
LSE:GYM
2.6%
GB Hospitality
1.5%
GB Market
1 Year Returns
-11.6%
LSE:GYM
-9.1%
GB Hospitality
-6.3%
GB Market
GYM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Gym Group (GYM) 2.9% 1.8% 16.4% -11.6% 0.7% -
GB Hospitality 2.6% -0.3% -2.5% -9.1% 9.8% 29.5%
GB Market 1.5% -2.1% 1.8% -6.3% 15.4% 2%
1 Year Return vs Industry and Market
  • GYM underperformed the Hospitality industry which returned -9.1% over the past year.
  • GYM underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -6.3% over the past year.
Price Volatility
GYM
Industry
5yr Volatility vs Market

GYM Value

 Is Gym Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Gym Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Gym Group.

LSE:GYM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.1%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:GYM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Hospitality Unlevered Beta Simply Wall St/ S&P Global 0.93
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.932 (1 + (1- 19%) (15.1%))
1.03
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.03
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.03 * 6.65%)
8.08%

Discounted Cash Flow Calculation for LSE:GYM using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Gym Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:GYM DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 8.08%)
2019 6.45 Analyst x3 5.97
2020 15.00 Analyst x3 12.84
2021 18.02 Analyst x1 14.27
2022 20.40 Est @ 13.18% 14.95
2023 22.35 Est @ 9.6% 15.16
2024 23.94 Est @ 7.09% 15.02
2025 25.21 Est @ 5.33% 14.64
2026 26.25 Est @ 4.1% 14.10
2027 27.10 Est @ 3.24% 13.46
2028 27.81 Est @ 2.63% 12.79
Present value of next 10 years cash flows £133.19
LSE:GYM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £27.81 × (1 + 1.23%) ÷ (8.08% – 1.23%)
£410.79
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £410.79 ÷ (1 + 8.08%)10
£188.88
LSE:GYM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £133.19 + £188.88
£322.07
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £322.07 / 137.78
£2.34
LSE:GYM Discount to Share Price
Calculation Result
Value per share (GBP) From above. £2.34
Current discount Discount to share price of £2.32
= -1 x (£2.32 - £2.34) / £2.34
1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Gym Group is available for.
Intrinsic value
1%
Share price is £2.32 vs Future cash flow value of £2.34
Current Discount Checks
For Gym Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Gym Group's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Gym Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Gym Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Gym Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:GYM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in GBP £0.05
LSE:GYM Share Price ** LSE (2019-05-21) in GBP £2.32
United Kingdom of Great Britain and Northern Ireland Hospitality Industry PE Ratio Median Figure of 34 Publicly-Listed Hospitality Companies 17.83x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 789 Publicly-Listed Companies 16.22x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Gym Group.

LSE:GYM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:GYM Share Price ÷ EPS (both in GBP)

= 2.32 ÷ 0.05

42.83x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Gym Group is overvalued based on earnings compared to the GB Hospitality industry average.
  • Gym Group is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Gym Group's expected growth come at a high price?
Raw Data
LSE:GYM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 42.83x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
22.3%per year
United Kingdom of Great Britain and Northern Ireland Hospitality Industry PEG Ratio Median Figure of 28 Publicly-Listed Hospitality Companies 2.02x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 575 Publicly-Listed Companies 1.5x

*Line of best fit is calculated by linear regression .

LSE:GYM PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 42.83x ÷ 22.3%

1.92x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Gym Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Gym Group's assets?
Raw Data
LSE:GYM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in GBP £1.09
LSE:GYM Share Price * LSE (2019-05-21) in GBP £2.32
United Kingdom of Great Britain and Northern Ireland Hospitality Industry PB Ratio Median Figure of 54 Publicly-Listed Hospitality Companies 1.4x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,368 Publicly-Listed Companies 1.5x
LSE:GYM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:GYM Share Price ÷ Book Value per Share (both in GBP)

= 2.32 ÷ 1.09

2.13x

* Primary Listing of Gym Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Gym Group is overvalued based on assets compared to the GB Hospitality industry average.
X
Value checks
We assess Gym Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check)
  5. Gym Group has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

GYM Future Performance

 How is Gym Group expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
22.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Gym Group expected to grow at an attractive rate?
  • Gym Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Gym Group's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Gym Group's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:GYM Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:GYM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 22.3%
LSE:GYM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 12.5%
United Kingdom of Great Britain and Northern Ireland Hospitality Industry Earnings Growth Rate Market Cap Weighted Average 12.1%
United Kingdom of Great Britain and Northern Ireland Hospitality Industry Revenue Growth Rate Market Cap Weighted Average 5.8%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:GYM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:GYM Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 249 77 30 1
2022-12-31 211 70 27 2
2021-12-31 190 61 22 3
2020-12-31 170 57 19 6
2019-12-31 150 49 15 6
LSE:GYM Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-12-31 124 37 7
2018-09-30 115 34 7
2018-06-30 107 31 6
2018-03-31 99 29 7
2017-12-31 91 28 7
2017-09-30 86 27 7
2017-06-30 80 27 8
2017-03-31 77 26 7
2016-12-31 74 26 6
2016-09-30 70 23 0
2016-06-30 67 19 -5
2016-03-31 64 15 -8

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Gym Group's earnings are expected to grow significantly at over 20% yearly.
  • Gym Group's revenue is expected to grow by 12.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:GYM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Gym Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:GYM Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 0.22 0.22 0.22 1.00
2022-12-31 0.19 0.19 0.19 1.00
2021-12-31 0.16 0.16 0.15 3.00
2020-12-31 0.14 0.14 0.13 4.00
2019-12-31 0.11 0.11 0.10 4.00
LSE:GYM Past Financials Data
Date (Data in GBP Millions) EPS *
2018-12-31 0.05
2018-09-30 0.05
2018-06-30 0.05
2018-03-31 0.05
2017-12-31 0.06
2017-09-30 0.06
2017-06-30 0.06
2017-03-31 0.05
2016-12-31 0.04
2016-09-30 0.00
2016-06-30 -0.05
2016-03-31 -0.10

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Gym Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Gym Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Gym Group has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

GYM Past Performance

  How has Gym Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Gym Group's growth in the last year to its industry (Hospitality).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Gym Group has delivered over 20% year on year earnings growth in the past 5 years.
  • Gym Group's 1-year earnings growth is less than its 5-year average (0.5% vs 66.3%)
  • Gym Group's earnings growth has not exceeded the GB Hospitality industry average in the past year (0.5% vs 12.8%).
Earnings and Revenue History
Gym Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Gym Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:GYM Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 123.88 7.21 87.08
2018-09-30 115.37 6.80 83.04
2018-06-30 106.86 6.40 79.01
2018-03-31 99.12 6.79 71.11
2017-12-31 91.38 7.17 63.21
2017-09-30 85.84 7.42 58.96
2017-06-30 80.30 7.67 54.71
2017-03-31 76.92 6.69 52.62
2016-12-31 73.54 5.70 50.54
2016-09-30 70.37 0.39 53.01
2016-06-30 67.21 -4.93 55.48
2016-03-31 63.59 -8.20 52.42
2015-12-31 59.98 -11.47 49.36
2015-09-30 56.13 -10.72 49.31
2015-06-30 52.29 -9.97 49.26
2015-03-31 48.88 -9.38 41.35
2014-12-31 45.48 -8.78 33.43
2013-12-31 30.72 -7.93 28.05
2012-12-31 22.26 -1.23 11.89

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Gym Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Gym Group used its assets less efficiently than the GB Hospitality industry average last year based on Return on Assets.
  • Gym Group has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess Gym Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Gym Group has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

GYM Health

 How is Gym Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Gym Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Gym Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Gym Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Gym Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Gym Group Company Filings, last reported 4 months ago.

LSE:GYM Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 149.84 48.17 3.03
2018-09-30 149.84 48.17 3.03
2018-06-30 146.94 42.75 21.93
2018-03-31 146.94 42.75 21.93
2017-12-31 120.88 37.11 0.46
2017-09-30 120.88 37.11 0.46
2017-06-30 118.17 9.28 5.40
2017-03-31 118.17 9.28 5.40
2016-12-31 114.29 9.18 4.82
2016-09-30 114.29 9.18 4.82
2016-06-30 111.40 9.07 7.50
2016-03-31 111.40 9.07 7.50
2015-12-31 108.44 8.97 2.86
2015-09-30 108.44 8.97 2.86
2015-06-30 27.59 78.89 2.94
2015-03-31 27.59 78.89 2.94
2014-12-31 31.59 74.90 5.58
2013-12-31 -4.73 96.93 4.09
2012-12-31 -3.76 42.42 3.29
  • Gym Group's level of debt (32.1%) compared to net worth is satisfactory (less than 40%).
  • Gym Group had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.
  • Debt is well covered by operating cash flow (76.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 8.4x coverage).
X
Financial health checks
We assess Gym Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Gym Group has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

GYM Dividends

 What is Gym Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.56%
Current annual income from Gym Group dividends. Estimated to be 0.86% next year.
If you bought £2,000 of Gym Group shares you are expected to receive £11 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Gym Group's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2%).
  • Gym Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.27%).
Upcoming dividend payment

Purchase Gym Group before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:GYM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Hospitality Industry Average Dividend Yield Market Cap Weighted Average of 32 Stocks 3.2%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 705 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:GYM Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.03 1.00
2022-12-31 0.02 2.00
2021-12-31 0.02 4.00
2020-12-31 0.02 7.00
2019-12-31 0.02 7.00
LSE:GYM Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-03-19 0.013 0.580
2018-03-20 0.012 0.464
2017-03-14 0.015 0.722
2016-08-31 0.005 0.265

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Gym Group is not paying a notable dividend for United Kingdom of Great Britain and Northern Ireland, therefore no need to check if the payments are stable.
  • Gym Group is not paying a notable dividend for United Kingdom of Great Britain and Northern Ireland, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Gym Group's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Gym Group's dividends as it is not paying a notable one for United Kingdom of Great Britain and Northern Ireland.
Future Payout to shareholders
  • No need to calculate the sustainability of Gym Group's dividends in 3 years as they are not expected to pay a notable one for United Kingdom of Great Britain and Northern Ireland.
X
Income/ dividend checks
We assess Gym Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Gym Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Gym Group has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

GYM Management

 What is the CEO of Gym Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Richard Darwin
COMPENSATION £338,324
AGE 50
TENURE AS CEO 0.7 years
CEO Bio

Mr. Richard Darwin serves as Chief Executive Officer at The Gym Group plc since September 17, 2018 and also serves as its Company Secretary. Mr. Darwin served as Company Secretary of The Gym Group plc and was its Chief Financial Officer from May 2015 to October 31, 2018. Mr. Darwin possesses extensive experience working for leisure and FMCG companies in the UK and internationally. He joined The Gym in May 2015. Mr. Darwin served as a Finance Director/Chief Financial Officer of Essenden PLC from January 1, 2010 to April 2015 and as its Secretary from October 31, 2010 to January 16, 2015. He served as Chief Financial Officer of Paramount Restaurants from 2003 to 2008. He led both Essenden and Paramount through periods of significant strategic and operational change. After qualifying as a Chartered Accountant with Coopers & Lybrand, Mr. Darwin worked with a number of high-profile brands in strategic development roles, including The Rank Group plc, Hard Rock Caf´e International and Diageo plc, where he completed a number of high-value mergers and acquisitions. He has been an Executive Director of The Gym Group plc since May 5, 2015. Mr. Darwin served as a Director of Caffe Uno Brasseries Limited, Charlotte Street Restaurants Plc, Chez Gerard Limited, Chez Gerard Restaurants Limited, Craftbutton Limited, EX RCC Sub-co Limited, Gordon Propco 1 Limited, Gordon Propco 2 Limited, Groupe Chez Gerard Limited, Groupe Chez Gerard Restaurants Limited, Leviathan Limited, Livebait Restaurants Limited, Paramount Acquisitions Limited, Paramount Holdings Limited, Paramount Limited, Paramount Restaurants Limited and Real Inns Limited. He served as a Director of Essenden PLC from January 1, 2010 to April 2015. He served as a Director at Georgica Ltd, Georgia Holdings Ltd, Georgica Lewisham Ltd, Tenpin Ltd, Tenpin Halifax Ltd, Tenpin Widnes Ltd, Tenpin Sunderland Ltd and GNU 5 Ltd.

CEO Compensation
  • Richard's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Richard's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Gym Group management team in years:

0.6
Average Tenure
50
Average Age
  • The average tenure for the Gym Group management team is less than 2 years, this suggests a new team.
Management Team

Richard Darwin

TITLE
CEO & Executive Director
COMPENSATION
£338K
AGE
50
TENURE
0.7 yrs

John Treharne

TITLE
Founder & Executive Director
COMPENSATION
£478K
AGE
64
TENURE
12.3 yrs

Mark George

TITLE
CFO, Company Secretary & Director
COMPENSATION
£233K
TENURE
0.6 yrs

Nick Henwood

TITLE
Chief Operating Officer
TENURE
2.8 yrs

Jasper McIntosh

TITLE
Chief Information Officer
AGE
45
TENURE
0.2 yrs

Barney Harrison

TITLE
Commercial & Marketing Director

Ann-marie Murphy

TITLE
Director of People & Development
TENURE
0.2 yrs

David Melhuish

TITLE
Head of Property Development
Board of Directors Tenure

Average tenure and age of the Gym Group board of directors in years:

2.8
Average Tenure
56
Average Age
  • The average tenure for the Gym Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

Penny Hughes

TITLE
Independent Non-Executive Chairwoman
COMPENSATION
£130K
AGE
59
TENURE
3.5 yrs

Richard Darwin

TITLE
CEO & Executive Director
COMPENSATION
£338K
AGE
50
TENURE
4 yrs

John Treharne

TITLE
Founder & Executive Director
COMPENSATION
£478K
AGE
64

Mark George

TITLE
CFO, Company Secretary & Director
COMPENSATION
£233K
TENURE
0.6 yrs

Paul J. Gilbert

TITLE
Senior Independent Non-Executive Director
COMPENSATION
£53K
AGE
56

David Kelly

TITLE
Independent Non-Executive Director
COMPENSATION
£50K
AGE
55
TENURE
2.8 yrs

Emma Woods

TITLE
Independent Non-Executive Director
COMPENSATION
£50K
TENURE
2.5 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Gym Group insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
27. Mar 19 Buy Richard Darwin Individual 27. Mar 19 27. Mar 19 11,000 £2.18 £24,027
27. Mar 19 Buy Penelope Hughes Individual 27. Mar 19 27. Mar 19 23,911 £2.20 £52,611
28. Sep 18 Sell Paul J. Gilbert Individual 28. Sep 18 28. Sep 18 -200,000 £3.10 £-620,000
20. Jun 18 Sell John Treharne Individual 20. Jun 18 20. Jun 18 -500,000 £2.73 £-1,362,500
X
Management checks
We assess Gym Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Gym Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

GYM News

Simply Wall St News

Calculating The Intrinsic Value Of The Gym Group plc (LON:GYM)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of The Gym Group plc (LON:GYM) as an investment opportunity by estimating the company's future cash flows and discounting them to their present value. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (£, Millions) £6.45 £15.00 £18.02 £20.40 £22.35 £23.94 £25.21 £26.25 £27.10 £27.81 Growth Rate Estimate Source Analyst x3 Analyst x3 Analyst x1 Est @ 13.18% Est @ 9.6% Est @ 7.09% Est @ 5.33% Est @ 4.1% Est @ 3.24% Est @ 2.63% Present Value (£, Millions) Discounted @ 8.11% £5.97 £12.83 £14.26 £14.93 £15.14 £14.99 £14.61 £14.06 £13.43 £12.75 Present Value of 10-year Cash Flow (PVCF)= £132.97m "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = UK£28m × (1 + 1.2%) ÷ (8.1% – 1.2%) = UK£409m Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = £UK£409m ÷ ( 1 + 8.1%)10 = £187.49m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is £320.46m.

Simply Wall St -

Read This Before Buying The Gym Group plc (LON:GYM) Shares

We often see insiders buying up shares in companies that perform well over the long term. … Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. … So shareholders might well want to know whether insiders have been buying or selling shares in The Gym Group plc (LON:GYM).

Simply Wall St -

Do The Gym Group plc’s (LON:GYM) Returns On Capital Employed Make The Cut?

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Return On Capital Employed (ROCE): What is it? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

You Might Like The Gym Group plc (LON:GYM) But Do You Like Its Debt?

While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Assessing first and foremost the financial health is. … Let's work through some financial health checks you may wish to consider if you're interested in this stock.

Simply Wall St -

If You Had Bought Gym Group (LON:GYM) Stock Three Years Ago, You'd Be Sitting On A 20% Loss, Today

We regret to report that long term The Gym Group plc (LON:GYM) shareholders have had that experience, with the share price dropping 20% in three years, versus a market return of about 29%. … Shareholders have had an even rougher run lately, with the share price down 20% in the last 90 days. … One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

Simply Wall St -

Is The Gym Group plc's (LON:GYM) 4.4% ROE Worse Than Average?

This article is for those who would like to learn about Return On Equity (ROE). … Our data shows Gym Group has a return on equity of 4.4% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is The Gym Group plc's (LON:GYM) High P/E Ratio A Problem For Investors?

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … To keep it practical, we'll show how The Gym Group plc's (LON:GYM) P/E ratio could help you assess the value on offer. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

The Gym Group plc (LON:GYM): Commentary On Fundamentals

The Gym Group plc (LON:GYM) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects. … is a company with

Simply Wall St -

Are The Gym Group plc (LON:GYM) Shareholders Getting A Good Deal?

Two important questions to ask before you buy The Gym Group plc (LON:GYM) is, how it makes money and how it spends its cash. … Today we will examine Gym Group’s ability to generate cash flows, as well as the level of capital expenditure it is expected to incur over the next couple of years, which will result in how much money goes to you. … Gym Group’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure

Simply Wall St -

A Look At The Fair Value Of The Gym Group plc (LON:GYM)

by projecting its future cash flows and then discounting them to today's value. … Discounted Cash Flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

GYM Company Info

Description

The Gym Group plc operates health and fitness facilities in the United Kingdom. As of March 19, 2019, it operated 160 gyms. The company was founded in 2007 and is based in Croydon, the United Kingdom.

Details
Name: The Gym Group plc
GYM
Exchange: LSE
Founded: 2007
£318,966,938
137,782,695
Website: http://www.tggplc.com
Address: The Gym Group plc
OneCroydon,
5th Floor,
Croydon,
CR0 0XT,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE GYM Ordinary Shares London Stock Exchange GB GBP 09. Nov 2015
OTCPK GYYM.F Ordinary Shares Pink Sheets LLC US USD 09. Nov 2015
BST 4GY Ordinary Shares Boerse-Stuttgart DE EUR 09. Nov 2015
BATS-CHIXE GYML Ordinary Shares BATS 'Chi-X Europe' GB GBP 09. Nov 2015
Number of employees
Current staff
Staff numbers
559
Gym Group employees.
Industry
Leisure Facilities
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/21 22:30
End of day share price update: 2019/05/21 00:00
Last estimates confirmation: 2019/05/10
Last earnings filing: 2019/03/19
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.